No foreign transaction fee credit cards in Canada

Most people don’t realize it, but just about every credit card out there charges foreign transaction fees. Whenever we charge something in a foreign currency, we end up paying an additional 2.5% on top of the spread. What that means is you pay an extra 2.5% on top of the exchange rate when you make your purchases.

If we travel often or if we make regular purchases online in foreign currencies, these fees can add up to a small fortune over time. I don’t know about you, but I much prefer to spend that money on myself.

Fortunately in Canada, there are a few credit cards that have no foreign transaction fees available in 2018. Each card has its pros and cons so here are the features to help you decide which card to pick up.

Earn 1% cash back on all purchases, with no limit on the amount you can earn

Not available to residents of Quebec

Aside from being a no-fee, no foreign transaction fee credit card, the Home Trust Preferred Visa card comes with the additional benefits of 1% cash back on all spending (including on foreign purchases) with no limits, a free Roadside Assistance membership, car rental insurance and Visa Zero Liability to help ensure card holders are protected against potential fraudulent activities – all notable perks for a no fee card. The downside is that this card is not available to residents of Quebec. It’s is also worth noting that card is limited to 10 authorized transactions per day – which is something I point out to in my full review of the Home Trust Preferred Visa.

Enjoy complimentary Priority Pass membership, plus 6 free visits per year from the date of enrolment.

The Scotiabank Passport Visa Infinite is the first credit card from a major financial institution without a foreign transaction fee. Combined with a spending bonus of 25,000 bonus points ($250 value) until January 31, 2019 and six free visits per year to Priority Pass lounges worldwide, this card is a great choice for an all-in-one travel card.

Plus, with robust travel insurance benefits and a competitive rewards structure of 2 Scotia points per dollar on groceries, restaurants, entertainment, and travel (including taxis), and 1 point per dollar on everything else, this card could earn you some serious rewards while saving you a lot of money. Scotia Rewards are flexible and can be redeemed for flight purchases on any airline, with no blackout dates. Not to mention, you’re eligible to receive 25% off car rentals at participating Avis locations – a perk that is offered to Scotiabank credit card holders.

Rogers Platinum MasterCard

While the Rogers Platinum MasterCard does not technically waive its foreign transaction fee, this card does offer 3% cash back on eligible purchases made in a non-Canadian currency. Since credit card foreign transaction fees typically hover around 2.5%, your net rewards on foreign purchases on this card would come out to 0.5% cash back. In terms of Canadian currency purchases, this card offers 2% cash back on Rogers-related purchases and 1.25% on everything else.

Alternative travel card

Paying that foreign transaction fee hurts, but there are a few credit cards that can offset (or partially offset) those fees based on the type of purchase you’re making.

Many credit cards offer a set cash back or rewards amount which is based on merchant categories such as groceries, gas, and restaurants. Each network (Visa, MasterCard, American Express, etc.) has different category codes, as well as rules and exceptions by region. But, the idea is that you can still earn your multipliers even when you’re overseas. Here are some of the best travel credit cards that will help you reduce your foreign transaction fees while travelling:

Earn 4 Scotia Rewards points per dollar on gas, groceries, entertainment, and restaurants; earn 1 point per dollar on all other purchases

Until February 28, 2019: Earn 15,000 bonus points (value: $150) when you make $1,000 in everyday purchases in the first 3 months

Discounted membership to Priority Pass airport lounges worldwide

The Scotiabank Gold American Express gives you 4 Scotia Rewards points for every $1 spent on gas, groceries, entertainment, and restaurants — this includes purchases made overseas in foreign currencies. When you factor in the 2.5% conversion fee, you still end up ahead. The card also gives 1 point per dollar on all other purchases, which will help offset that conversion fee.

Final word

If you travel often, then applying for one of these cards is a must. The Home Trust Preferred Visa is great for those who want a card with no foreign transaction fees and no annual fee. If you travel often, the Scotiabank Passport Visa Infinite is a good choice as it comes with no foreign transaction fees as well as the 6 free visits to PriorityPass lounges.

If you’re looking for a card that suits your day-to-day needs but still offsets the fee, the Scotiabank Gold American Express card is a great choice. For more credit cards, check out the credit card comparison tool to find out which card is best for you.

@guilmroy:disqus – Yup, you are correct about the TD card. That HSBC card is indeed available to Cdn residents however. The ‘catch’ is that you need to have an HSBC account open. That being said you can have a free savings accounting and then be eligible for the card (assuming you pass the requirements/credit check/etc)

According to my research on the HSBC website, they require applicants to be Premier clients which is either very expensive in monthly fees or requires a very high total relationship balance after the grace period lasting a few months. Premier clients who lose the status may be able to keep the credit card but they will not get the 50.00 CAD annual discount and HSBC states that they may close the account.

Tom Foolery

You may be correct. Probably worth a phone call if a no f/x card is important….

Ratehub.ca

We’d love to hear about your experience with the HSBC card. Did you apply?

Margaret Connor Foster

I can’t seem to find how the Rogers Rewards work. Do I get cash back or only credits towards a Rogers bill? I don’t have Rogers and don’t plan on getting it as a cell phone provider

It’s highly unusual for a credit card issuer to restrict spending within the credit limit. You may wish to consider the Fido Mastercard for non-CAD purchases. Points are easy to redeem as a credit card statement credit and the net reward rate is slightly higher. However, the spread is unrecoverable in case of refunds.

MV

Is this true? Is it disclosed in the Information package? I recently applied and I am waiting for the card/package….

Stephan Telka

I just got the card a couple days ago in time for a visit in the US. Purchases at end of day we’re getting declined, so I called next morning and this is what they told me. So annoying as you’re bound to have more than 10 purchases a day. Never heard of this kind of policy before. Card is free so that likely explains it.

MV

That is stupid…what is the point of having a card to use if you are limited in its use?? Do you remember reading that at all in their disclosure documents sent with the card?
I will probably cancel the card as soon as it arrives.. I will be travelling overseas this summer and I am certain I will make more than 10 transactions for most of my travel days.. I appreciate the info Stephen, any other cards you would suggest?

This is a great find! Thank you. Unfortunately, there isn’t much detail about certain features (e.g.: mobile device insurance, value of points, increasing reward earn rate) apart from the legal documents consisting of hundreds of pages. The 25 CAD fee for each supplementary card and the 25 000 CAD annual limit for the World Elite card can be dealbreakers for some prospective applicants who intend to share an account with others. The Boingo wi-fi access is a nice perk available for all 3 cards. This perk alone may convince some travellers to apply for the free card.

Francois

I get 2 points for every dollar up to $25000. After $25K, i only get 1 point for every dollar spent.

I also like this feature: Brand loyalist? This card’s for you. Increase your reward earn rate the more times you shop at the same places, in-store or online.

1 point for every dollar spent on first visit
2 points for every dollar spent on third visit
3 points for every dollar spent on 5th visit

Ratehub.ca

Hi Francois,
Have you received your Brim card yet? How has your experience been so far?

dfakjfe fea

ratehub, I think they are not even ready to ship out those cards yet. The company is quite new.

Ratehub

We’re always curious if anyone has received an early copy or if they might be part of an early release group. From Francois’ comment it wasn’t entirely clear if he already had the card.

dfakjfe fea

spoke with the Brim representative, it looks like they are not even ready to start the business. I don’t think there’s any hope waiting for this company to offer such a good card. Brim has a second business name.

Ratehub

Thank you for sharing your experiences on this.

Jim Webster

Francois, did you actually receive your Brim Card? i applied but nothing but silence for almost a month..

Andrew Yang

Rogers just changed the rewards rates effective May 23rd. Both the rogers and fido mastercard will now be 3% on foreign ELIGIBLE purchases and lower to 1.25% on everything else

It’s very deceiving to consumers for Rogers Bank to unexpectedly overhaul the reward structure of their credit cards. The free card from Brim Financial is more competitive and no need to worry about losing the exchange rate spread on returns with their cards. Goodbye Rogers Bank!

Ratehub.ca

The Scotia Passport Visa Infinite also is an option to consider. It launched recently as well.

Alex

Brim MasterCard 1% cashback

Great for travelling! Brand new MasterCard with no annual fee, no foreign transaction fees, no additional card member fee and use it with Apple Pay!! Use my code 60357 and get 10$! They also give you 100$ for every 5 people you refer. This card has loads of other perks and features!

Be aware that the Scotia passport visa has fine print about the lounge access benefit. It applies only to the primary card holder. The supplementary holder is out of luck if they happen to be travelling without you. Petty and annoying. Just FYI.

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